Things to Consider When Selling a Property with Tenants
Selling a home can sometimes be stressful. Selling a house with tenants is even more challenging. The key is that you understand what your goals are, how you can accomplish them as well as what the tenant’s rights are throughout the selling process. Selling a rental property with tenants on a lease means you have to continue to follow the terms of said lease throughout the sale. Here are what you need to know when selling a house with tenants.
Can I sell a property with tenants in it?
First question you may ask is “Can I sell a property with tenants in it?” The short answer is “Yes”. You can sell your property with tenants in it as long as you do not force them to leave the property or change the terms of their lease before the end of their lease period.
Wait for the lease to expire
If you have a month-to-month lease, or if the lease expires within two or three months, your best bet may be to wait until the lease expires. If you’re able to wait for your tenants to move out, you’ll be able to clean, do any cosmetic updates, and just generally spruce up the home before listing, which may help you snag a higher sale price.
Fixed-term leases do not expire when a property is sold
When selling a property with fixed-term lease, the tenant is entitled to occupy the property until the expiration of the agreed term. The lease will transfer from you to the new buyer, which means you are going to have a smaller buyer pool. The new buyer that you will attract will likely be from a small pool of local landlord or want-to-be landlord. The new buyer will have to honor the existing lease agreement with same terms and conditions.
Communicate with the tenants
Begin planning and communicating with your tenants after you decided to sell the property. Your property is their home. When you plan about selling, tenants will get worried about their next move. You can avoid friction by having them involved in the process. The sooner you communicate to the tenants the better about your planning to sell decision.
Offer your tenant a chance to buy
If your tenant really loves where they live, they might be interested in buying the home. It’s fine to approach your tenant about this option directly. If they’re interested in purchasing, you’ll definitely want to work with a real estate agent.
Work with tenants
If you have a fixed-term lease, you’ll need the tenant to cooperate in order to sell the house. To sell a house with tenants, you need the tenants to cooperate with you. You need the house well cleaned, managed, and presentable. Keeping the place dirty is the easiest way to scare away potential buyers.
Offer your tenant incentives
If the tenant decided to continue renting, you may be able to motivate tenants to help with the sale by offering tenant incentives, such as lowing the rent during the month. Your tenant will need to cooperate for showings, inspection and appraisal. This may create a positive atmosphere, ease the process and less stressful for you and the tenants.
Conclusion
Selling a house with tenants doesn’t have to add stress to the selling process. You want to try to work with your tenants as best as possible. Always keep your tenant in the loop during the process. Having open and honest communication will help you sell your home with a tenants. Giving them a chance to purchase the home may create a win-win situation for both of you.
Selling your home in Phoenix AZ
Contact Us or call Swee Ng at 480.721.6253 today to discuss your potential Phoenix House Value and our comprehensive marketing plan. We will prepare complimentary competitive market analysis (CMA) to find out what your home is worth at today’s market.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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